The Czech National Bank (CNB) is unsure about the role of Bitcoine in its reserves as it faces legal and volatility challenges. Jan Kubicek, a senior board member of the CNB, recently expressed skepticism regarding the cryptocurrency. He is concerned about its legal status and the possible difficulties it could create for the bank’s financial records and audits. Kubicek Views on Stratgeic Bitcoin Reserves While the bank has been looking into new types of investments, Kubicek pointed out that Bitcoin’s high volatility makes it a risky choice for central bank reserves. Bitcoin’s unpredictable price changes create a significant challenge for institutions like the CNB, which usually work with more stable assets in their reserves. Furthermore, Kubicek pointed out the lack of explicit laws about Bitcoin. Integrating Bitcoin into the national banking system could result in legal and compliance problems. He also highlighted the difficulties of directly owning Bitcoin. Unlike regular currencies or assets, owning Bitcoin requires significant changes in accounting and auditing. The complex nature of cryptocurrency transactions means new processes are needed for proper management, tracking, and reporting. This could make things even more complicated for the CNB. Czech National Bank Governor Eyes BTC Investment Meanwhile, towards the end of January 2025, Ales Michl, the bank’s governor, presented the Bitcoin acquisition plan to the board, setting the stage for a $7.3 billion investment. Governor Michl previously hinted at the potential move , mentioning an interest in acquiring “a few Bitcoin” to diversify the nation’s reserve assets. Despite skepticism from some corners, the central bank seems focused on new asset classes for long-term stability. In early January, CNB adviser Janis Aliapulios stated that the institution was instead planning to raise its gold holdings to 5% of total assets by 2028, dismissing BTC investment rumors at that time. However, if passed, the latest proposal would mark a significant pivot from traditional reserve strategies towards embracing digital assets alongside gold. Lack of Support for Strategic Crypto Reserve A recent survey result suggests that many Americans do not support Donald Trump’s idea for a strategic Bitcoin reserve . According to the poll, 51% of respondents opposed the proposed reserve, while another 34% supported it. Also, 15% of the survey respondents were neither here nor there. Some self-acclaimed Republicans supported the proposal, 41-40, while Democrats opposed it 59-29. Similarly, the South Korean Central Bank clarified that Bitcoin will not be considered for inclusion in its foreign exchange reserves for now. Officials from the bank stated that they have not reviewed nor discussed the possibility of holding Bitcoin as a reserve asset. They cited its extreme volatility and high transaction costs during market instability. The post Czech National Bank Uncertain About Bitcoin Reserves appeared first on TheCoinrise.com .
